Let's talk about self employed home loans if you have good credit and show enough income on your tax returns to qualify for mortgage to buy your dream home or refinance home mortgage.
If you've been self employed with an incorporated business for more than two (2) years and declare enough income on your tax returns, this business owner mortgage, at best interest rates, is for you. As an employee of your Corporation, you'll need 2 years average of your line 150 Notice of Assessment income.
If your business is a registered proprietorship (not incorporated) but you are just a bit short on assessed income to qualify for the mortgage amount needed, there may be options.
We'll look for business adjustments on your tax returns to fit you into one of the self employed loans for small business owners that are a proprietorship with good income and good credit.
We'll go through your tax returns and look for allowable expenses you have written off to reduce your taxes and add them back to increase your income. If you still get declined we'll protect your credit and redirect your application for alternative mortgage financing, without wasting time.
Can't prove all income but I need a mortgage loan, a reader searching for self employed mortgage Niagara Falls says.
If the income reported on your tax returns falls below the bank’s debt service requirements, your mortgage will be declined.
To fit into the "prime" self employed financing where some business expenses can be added back, you must pass two full years in business as a registered proprietorship, not incorporated. You must have a business bank account, good credit and declare income on your tax returns.
You've filed your personal taxes for both years, have your 2 year tax returns and CRA Notice of assessment, you do not owe CRA taxes or have proof of payment on any due balances.
Two years averaged CRA personal Notice of Assessment income will be used as a starting point. If you're a little short on income to qualify, we look at your tax returns to find allowable expenses to add back and raise your income.
Let's take a look how a registered proprietor can make up a small income shortfall (not applicable to corporations):
Let's say we can find taxable items that we can add back allowable $8,500 -- This bumps up the income we can use to $65,500.
If your two year average is still not enough to qualify for mortgage amount needed, then we'll move you to alternative mortgage financing to buy a home with 20% down or up to 80% mortgage refinance for self employed to cash out home equity or for debt consolidation mortgage refinance.
*To to buy a home with CRA Income verified insured mortgages for self employed you will need a minimum of 5-10% down. For any portion of purchase price portion over $500,000 you'll need an additional 10% down.
If after reworking the income, your application still falls below the required debt service levels for income verified self employed home loans, we can quickly redirect it to an alternative mortgage financing – without you having to do anything.
You have the option of self employed mortgage no proof of income from alternative mortgage lenders at 80% of home value. These residential lenders can be more flexible and creative.
If we need to send your application to more than one lender, only the original credit report on our system will be used, without the next lender needing to pull your credit again. This protects your credit score rating.
Marie Copeland FSU, Hamilton Mortgage Loans
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*Lenders change their products and interest rates regularly and without notice. Check with us for updates.
1 (905) 537-8815
Banks and AAA lenders pay us for your service. Some alternative mortgage financing and all private mortgage lending broker fees are payable by clients.